UPDATE: Chinas GIANT short position getting worse

It’s not getting any better for China in their Short Copper position. Copper rose to record levels in Shanghai today on concern that supply can’t meet China’s demands. China decided they were going to start selling off their reserves to drive down the prices. Short sellers knew this was coming and started putting on a short position as well. Instead this turned into the biggest short squeeze in the last 10 years. China sold roughly 51,000 ton of copper in four weekly auctions started Nov 16th (this is when I picked up on the story) to dampen prices. It wasn’t enough. It didn’t help and all the people that were playing along with the short have had to start buying back positions. It now stands at $5119 a ton and climbing. Go 3 months out and it’s not as bad but immediate delivery copper is soaring. It’s bad enough when you have a trader and his company making a huge play but the whole damn country of China. I love watching this unfold. Complete story here